State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

Brought to you by:

Oklahoma (OK)

OK Sales Tax - Name of Tax and General Application:

Oklahoma imposes a tax on sales of tangible personal property sold at retail in the state. This tax is known as a "sales tax". In addition a tax is imposed on use, storage or consumption of tangible personal property purchased or brought into the state. This tax is known as a "use tax" and is only applied where sales tax has not been collected.

OK Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Oklahoma imposes nexus when tangible personal property is shipped out of, or (if retailer has title and physical possession) into the state.

OK Local Tax - Do Localities Impose Tax?

Yes, Oklahoma imposes local sales tax.

OK Resale Certificate Renewal Agreements:

Sales for resale are exempt from tax provided that such sales are made to residents of Oklahoma that have a sales tax permit. Oklahoma may not permit an exemption as a sale for resale if there is a reasonable reason do disallow the exemption.

OK Resale Certificate Renewal Periods

Certificates must be renewed every three years.

OK Statute of Limitations

Later of three years from: the date the return was due or from the date the return was filed.